Income Inequality and Collective Bargaining.

The 6^th part of Timothy Noah's, Slate 10-part series, is titled "The Great Divergence and the Death of Organized Labor." It gives a summary of the changes organized labor has experienced since the 1930's and different analysts' take on its effect on the economy. What I found interesting, given the current uproar in Wisconsin, was the different takes on collective bargaining. Noah explains how Truman coaxed the Chamber of Commerce President into saying, "Labor unions are woven into our economic pattern of American life, and collective bargaining is part of the democratic process. I say recognize this fact not only with our lips but with our hearts" in an effort to continue the labor peace that had reigned during the war. He also notes a very different interpretation that came under the Reagan administration with Reagan's chair of the National Labor Relations Board, Donald Dotson, who believed collective bargaining led to "the destruction of individual freedom."

            Currently, thousands are protesting in Wisconsin to protect collective bargaining rights and the debate over the Governor's proposal is being framed as the necessity of balancing the budget and the need for state workers to sacrifice for the greater good vs. an attack on collective bargaining an labor rights.

It's clear that unions' have an effect on income inequality and the article points to many economists published findings. Harvard economist Richard Freeman found in 1980 that at the national level, unions' net effect reduced income inequality. Which is supported by Berkley economist David Card who in 2001 found that between 15 and 20 percent of the Great Divergence among men was due to the decline in union membership.

Do you think that limiting the collective bargaining power of unions will have an effect on the Great Divergence like the decline in union membership did? Are strong unions necessary for a reduction of income inequality, and should there even be a reduction of income inequality? Also, what are everyone's thoughts on how the Wisconsin debate is being framed by the media and by politicians on both sides?